,i #aacth ,,congress #ast ,session ,h4 ,r4 #abba ,,in ,,the ,,house ,,of ,,representatives ,march #ae1 #bjac ,mr4 ,fincher introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to require the ,federal banking agencies to conduct an impact study on the cumulative effect of certain provisions of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act before issuing final rules amending the agencies' general risk-based capital requirements for determining risk-weighted assets as proposed in the ,standardized ,approach for ,risk ,weighted ,assets ,notice of ,proposed ,rulemaking and the ,advanced ,approaches ,risk-based ,capital ,rule2 ,market ,risk ,capital ,rule ,notice of ,proposed ,rulemaking1 and the ,implementation of ,basel ,,iii1 ,minimum ,regulatory ,capital ,ratios ,notice of ,proposed ,rulemaking issued in ,june #bjab1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,basel ,,iii ,capital ,impact ,study ,act4 #b4 ,study required ,the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 and the ,federal ,deposit ,insurance ,corporation 7hereinafter1 the ,federal banking agencies7 shall conduct the study and issue the report to ,congress required by section #c1 prior to issuing any final rule amending the agencies' general risk-based capital requirements for-- 7#a7 determining risk-weighted assets as proposed in the ,standardized ,approach for ,risk ,weighted ,assets ,notice of ,proposed ,rulemaking issued in ,june #bjab 7hereinafter1 the ,standardized ,approach ,,npr72 7#b7 determining risk-weighted assets as proposed in the ,advanced ,approaches ,risk-based ,capital ,rule2 ,market ,risk ,capital ,rule ,notice of ,proposed ,rulemaking issued in ,june #bjab 7hereinafter1 the ,advanced ,approach ,,npr72 and 7#c7 determining minimum regulatory capital ratios as proposed in the ,regulatory ,capital1 ,implementation of ,basel ,,iii1 ,minimum ,regulatory ,capital ,ratios1 ,capital ,adequacy1 ,transition ,provisions1 and ,prompt ,corrective ,action ,notice of ,proposed ,rulemaking issued in ,june #bjab 7hereinafter1 the ,basel ,,iii ,,npr74 #c4 ,study and report 7a7 ,study 7#a7 ,in general ,the ,federal banking agencies shall1 jointly1 conduct a study of the impact of the ,standardized ,approach ,,npr and the ,advanced ,approach ,,npr1 respectively1 on the minimum regulatory capital requirements of insured depository institutions and insured depository institution holding companies4 ,as part of this study1 the ,federal banking agencies shall separately identify the various provisions of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 and of amendments made by that ,act1 that affect capital quality1 capital levels1 asset quality1 and the risk management activities of insured depository institutions and insured depository holding companies 7hereinafter identified provisions7 and take into consideration the impact of such provisions4 ,without excluding any provisions the ,federal banking agencies identify as affecting capital quality1 capital levels1 asset quality1 and the risk management activities of insured depository institutions and insured depository holding companies1 the identified provisions shall include the following provisions of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 and the amendments made by such provisions of such ,act3 7,a7 ,section #aae 7regarding enhanced supervision and prudential standards74 7,b7 ,section #afe 7regarding enhanced supervision and prudential standards74 7,c7 ,section #aff 7regarding early remediation requirements74 7,d7 ,section #aga 7regarding leverage and risk-based capital requirements74 7,e7 ,section #fai 7regarding prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds74 7,f7 ,section #ici 7regarding the removal of statutory references to credit ratings74 7,g7 ,section #ida 7regarding regulation of credit risk retention and exemption of qualified residential mortgages74 7,h7 ,section #adab 7regarding safe harbor and rebuttable presumptions for qualified mortgages74 7#b7 ,contents of study ,in conducting the study required in paragraph 7#a71 the ,federal banking agencies shall determine and make projections of the likely cumulative impact of the ,standardized ,approach ,,npr1 the ,advanced ,approach ,,npr1 the ,basel ,,iii ,,npr1 and the identified provisions on required regulatory capital levels1 capital quality1 asset quality1 and risk management at covered financial institutions4 ,based on these findings1 the ,federal banking agencies shall provide an assessment regarding-- 7,a7 changes to required capital levels2 7,b7 the aggregate increase or decrease of total risk-weighted asset levels for the institutions to which the ,standardized ,approach ,,npr or ,advanced ,approach ,,npr would be applicable based on current assets2 7,c7 whether the ,n,p,rs and identified provisions will cause capital levels at covered institutions to fluctuate with more frequency or by greater amounts than the current rules and indicate what1 if any1 safety and soundness issues such fluctuations raise for financial institutions or the financial system2 7,d7 whether the ,n,p,rs and the identified provisions will result in the discontinuation of the use of certain risk management tools by covered financial institutions and the impact on the safety and soundness of financial institutions and the financial system2 7,e7 the impact the ,n,p,rs and the identified provisions will have on residential mortgage lending and home equity lines of credit2 7,f7 the likely cumulative impact of the ,n,p,rs and the identified provisions will have on the availability of credit1 generally and in low- and moderate-income areas2 7,g7 the variance in required capital levels1 assets1 and asset quality between institutions that implement the advanced approaches or approaches to risk weighting of assets and those that use the ,standardized ,approach ,,npr or the ,advanced ,approach ,,npr and the impact on competition between entities using different approaches2 and 7,h7 historical probability of default and loss given default of residential mortgage loans and the proposed risk weightings in the ,standardized ,approach ,,npr and the ,advanced ,approach ,,npr1 and whether such proposed risk weightings are appropriately and fairly calibrated4 7#c7 ,voluntary participation ,the ,federal banking agencies may seek input and participation from insured depository institutions and insured depository institution holding companies1 however1 participation in the study by insured depository institutions and insured depository institution holding companies shall be voluntary4 7b7 ,report 7#a7 ,in general ,the ,federal banking agencies shall issue a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives on the results of the study required by subsection 7a74 7#b7 ,contents ,the ,federal banking agencies shall include the methodologies and assumptions used in the study as well as the required elements of the study listed in subsection 7a7 in the report required in this subsection4 #d4 ,competitive equality ,section #ijh7;a77#a7 of the ,international ,lending ,supervision ,act of #aihc 7#ab ,u4,s4,c4 #cijg7;a77#a77 is amended by inserting at the end the following3 ,each appropriate ,federal banking agency shall1 consistent with safety and soundness1 seek to ensure that any differences in rules implementing the capital standards required under this section or other provisions of ,federal law for banking institutions1 savings associations1 bank holding companies1 and savings and loan holding companies do not give competitive advantages to any class or group of such institutions1 associations1 or companies unless required by other ,federal law1 and do not undermine any requirements for enhanced supervision and prudential standards required by section #aae of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecbe74 4